The trade war is back – what went wrong, what it means for share markets and Australia

The trade war is back – what went wrong, what it means for share markets and Australia   Key points   Consumer expectations of instant gratification are driving down delivery times   Labour shortages and traffic congestion highlight the criticality of well-located logistics facilities The trade war between the US and China has returned after talks to resolve their trade differences broke down. Our base case remains that a deal will be reached to resolve …

Australia slides into a “per capita recession”

Australia slides into a “per capita recession” Key points Australian growth slowed even more in the December quarter. Growth may bounce back a bit this year, but the housing downturn will likely constrain it to around 2- 2.5%.   As a result, unemployment is likely to drift up and wages growth and inflation remain lower for longer.   The RBA is on track to cut rates this year and the housing downturn will likely see …

Four reasons the global economic outlook for 2019 looks positive

Four reasons the global economic outlook for 2019 looks positive Many investors have been rattled by falls in share markets and are fretting about what the new year may hold. But there are a number of reasons to suggest that after a weak 2018, 2019 will be better, and that a well-diversified portfolio should deliver reasonable returns. 1. This is a “mid-cycle” correction Firstly, while some investors fear a recession and full-blown bear market, when …

What are the 3 biggest living expenses for households?

What are the 3 biggest living expenses for households? We check out the three largest contributors to household spending in Australia and where people would source additional cash if living expenses rose. If you worked a full-time job in Australia in 1975, the average amount you would’ve earned a year was about $7,600, whereas today, that figure would be closer to $72,000, according to research by McCrindle.i That’s welcome news, but while we’re earning more …

Why rates aren’t going up in Australia Here’s 4 reasons why:

Why rates aren’t going up in Australia Here’s 4 reasons why: It wasn’t so long ago that everyone was wondering when rates were going to rise. Now it’s looking like we will be waiting for a while before the Reserve Bank of Australia puts up official rates. We don’t expect the RBA to raise rates until 2020. How is this so, you may ask, given inflationary fears are playing some havoc with stock markets, particularly …

Balancing career, family and time (Video)

Balancing career, family and time (Video) Australians who are living their dream are planners. They believe in their ability to create the life they want and they are not afraid to ask for help or seek advice. Balancing career, family and time …. Here Christina and Richard Taylor explain how meeting a financial planner opened their mind to new possibilities for their careers, family and love for travel.  If you have a question you’d like answered …

Fixed Income view: It’s the End of the World as we know it, and I feel fine

Fixed Income view: It’s the End of the World as we know it, and I feel fine Economic momentum has gathered pace over the past 12 months, whilst the compensation for risk, known as risk premium, has deteriorated across asset markets. Valuations are expensive leaving investors highly susceptible to any macro-economic shifts, a tightening of financial conditions, and geopolitical shocks, according to AMP Capital’s Global Fixed Income Head of Macro, Ilan Dekell. “It’s critical to …

How are Australia’s states and territories tracking?

How are Australia’s states and territories tracking? An end to the fall in mining investment is helping to stabilise growth in Australia’s mining states and territories (WA, Qld and NT to a lesser extent) while a slowing housing sector is starting to act as a drag on NSW and Vic. Tas is benefitting from a lift in population growth and housing “refugee” demand from Sydney and Melbourne. Growth in SA and the ACT has been …

Best places to retire in Australia and overseas

Are you seeking better value for money, or a better lifestyle, in retirement? If so, here’s some retirement locations to consider.

Weekly Market Update 25 May 2018

Weekly Market Update 25 May 2018 Investment markets and key developments over the past week The past week has again seen geopolitical issues dominate with renewed trade worries out of the US, the cancellation of the North Korean summit and rising angst around the formation of a populist coalition government in Italy. Despite this US shares managed a slight rise but Eurozone, Japanese, Chinese and Australian shares fell. Bond yields continued to blow out in Italy …